Diageo has completed the acquisition of another 14.98% stake in United Spirits Limited (USL) at INR1,440 ($23.9) per share for total amount of INR31.3bn (£344m) from United Breweries Holdings Limited (UBHL) and its subsidiaries KFinvest, Palmer Investment Group, UB Sports Management Overseas and SWEW Benefit.
With the deal completed, Diageo now becomes the major shareholder in USL with a total shareholding of 25.02% at total cost of around INR52.3bn (£594m).
Diageo CEO Ivan Menezes said USL's strong market-leading position combined with Diageo's strength and capabilities opens an exciting and important new chapter for Diageo in the attractive Indian spirits market.
"Since we received approval for this transaction we have been getting ready for closing and integration. Having completed the share purchase, we will now begin the work to identify and capture the significant growth opportunities within this attractive market," Menezes added.
"Through this acquisition we have transformed Diageo's position in India, a market which is one of the biggest growth opportunities in our industry. India will become one of Diageo's largest markets and with its increasing number of middle class consumers looking for premium and prestige local spirits brands as income levels rise it will also become a major contributor to our growth ambitions."
UB Group chairman Dr Vijay Mallya said USL has entered into the next stage on its journey and he looks forward to remaining part of that journey in his role as chairman of USL.
Dr Mallya will continue to serve as non-executive director and chairman of USL.
